Want global exposure through domestic mutual funds? Here are 10 schemes with the highest overseas allocation
Investors looking to diversify beyond Indian equities can get some international exposure through domestic mutual funds without opening an overseas brokerage account. Several Indian equity schemes invest a portion of their portfolios in foreign stocks, although the extent of this exposure and the sectors they target vary widely.
Edelweiss Technology Fund had the highest overseas allocation among the domestic equity schemes considered, with 24.38% of its net assets invested internationally as of August 2026. Franklin India Technology Fund followed with 20.03%, while Kotak Pioneer Fund had 16.81%, according to portfolio disclosure data compiled by Value Research.
However, the funds’ recent performance has varied considerably. SBI Children’s Fund – Investment Plan delivered a 13.58% one-year return, while Franklin India Technology Fund and SBI Technology Opportunities Fund recorded negative returns over the same period.
Edelweiss Technology Fund tops the list
Edelweiss Technology Fund led the ranking, with overseas holdings worth ₹197 crore and an international allocation of 24.38% of its net assets. Its direct plan returned 4.25% over one year, based on Value Research data as on 11 October 2026.
Franklin India Technology Fund came second, with 20.03% of its portfolio invested overseas. Its international holdings were valued at ₹352 crore, while its direct plan recorded a negative one-year return of 12.19%.
Kotak Pioneer Fund ranked third, with an overseas allocation of 16.81% and international holdings worth ₹720 crore. Its direct plan delivered a one-year return of 7.56%.
DSP Natural Resources and New Energy Fund and SBI Technology Opportunities Fund followed, with international allocations of 13.22% and 13.19%, respectively. Their direct plans returned 8.56% and -9.94% over one year.
Top 10 domestic mutual funds with the highest international allocation
The following ranking is based on Value Research’s August 2026 portfolio disclosures.
|
Mutual fund scheme |
Overseas allocation |
1-year return |
| Edelweiss Technology Fund | 24.38% | 4.25% |
| Franklin India Technology Fund | 20.03% | -12.19% |
| Kotak Pioneer Fund | 16.81% | 7.56% |
| DSP Natural Resources and New Energy Fund | 13.22% | 8.56% |
| SBI Technology Opportunities Fund | 13.19% | -9.94% |
| SBI Children’s Fund – Investment Plan | 12.64% | 13.58% |
| DSP Value Fund | 12.56% | 1.56% |
| Parag Parikh Flexi Cap Fund | 11.06% | -4.55% |
| Axis Innovation Fund | 10.66% | 12.15% |
| SBI Focused Fund | 10.44% | 8.12% |
| Sources: Value Research. Portfolio disclosures for August 2026 . Returns are for direct plans over one year as on 11th October 2026. | ||
SBI Children’s Fund – Investment Plan had the highest one-year return among the 10 schemes, at 13.58%, followed by Axis Innovation Fund at 12.15%. At the other end, Franklin India Technology Fund had the weakest return, at -12.19%, followed by SBI Technology Opportunities Fund at -9.94%.
Parag Parikh Flexi Cap Fund ranked eighth by overseas allocation but had the largest overseas holdings by value, at ₹16,300 crore. This reflects the difference between the percentage of a portfolio invested abroad and the absolute value of those investments.
What investors should consider
International exposure can help diversify a portfolio, but it does not automatically make a fund less risky or improve returns. Technology-focused schemes, for instance, can be sensitive to global technology valuations and earnings expectations. Currency movements can also affect returns from overseas investments.
Investors should look at a fund’s investment mandate, domestic and international holdings, portfolio concentration, costs and performance across different market cycles. One-year returns offer a recent snapshot, but should not be treated as a reliable indicator of future performance.
